Question 1

___________ is a value above which it is difficult for the market to rise.

Accepted Answer

A)  book value 
B)  resistance level 
C)  support level 
D)  none of these 
A)  book value 
B)  resistance level 
C)  support level 
D)  none of these B

Question 2

Technical analysis focuses on _______________________.

Accepted Answer

A)  finding opportunities for risk-free investing 
B)  changing attitudes regarding economic and political forces 
C)  changing prospects for earnings or growth of particular firms or industries 
D)  regulatory issues 
A)  finding opportunities for risk-free investing 
B)  changing attitudes regarding economic and political forces 
C)  changing prospects for earnings or growth of particular firms or industries 
D)  regulatory issues B

Question 3

If you believed in the reversal effect,you should ___________.

Accepted Answer

A)  buy bonds this period if you held stocks last period 
B)  buy stocks this period that performed poorly last period 
C)  buy stocks this period that performed well last period 
D)  do none of these 
A)  buy bonds this period if you held stocks last period 
B)  buy stocks this period that performed poorly last period 
C)  buy stocks this period that performed well last period 
D)  do none of these B

Question 4

_____________ cumulative tally of the number of advancing stocks minus declining stocks.

Accepted Answer

A)  the advance decline line is a 
B)  the market volume is a 
C)  the trin ratio is a 
D)  none of these are the 
A)  the advance decline line is a 
B)  the market volume is a 
C)  the trin ratio is a 
D)  none of these are the

Question 5

On a particular day,there were 920 stocks which advanced on the TSX and 723 which declined.The volume in advancing issues was 80,846,000 and the volume in declining issues was 70,397,000.The common measure of market breadth is __________.

Accepted Answer

A)  -10,449,000 
B)  -197 
C)  197 
D)  10,449,000 
A)  -10,449,000 
B)  -197 
C)  197 
D)  10,449,000

Question 6

Dow theory is a technique that attempts to identify _________________.

Accepted Answer

A)  long-term trends in stock market prices 
B)  short-term trends in stock market prices 
C)  long-term and short-term trends in stock market prices 
D)  risk-free trading opportunities 
A)  long-term trends in stock market prices 
B)  short-term trends in stock market prices 
C)  long-term and short-term trends in stock market prices 
D)  risk-free trading opportunities

Question 7

Which of the following is considered a sentiment indicator?

Accepted Answer

A)  odd-lot trading 
B)  short interest 
C)  credit balances in brokerage accounts 
D)  relative strength 
A)  odd-lot trading 
B)  short interest 
C)  credit balances in brokerage accounts 
D)  relative strength

Question 8

Information processing errors consist of
I.forecasting errors
II.overconfidence
III.conservatism
IV.framing

Accepted Answer

A)  I and II 
B)  I and III 
C)  III and IV 
D)  IV only 
E)  I,II and III 
A)  I and II 
B)  I and III 
C)  III and IV 
D)  IV only 
E)  I,II and III

Question 9

Congestion areas are associated with ________.

Accepted Answer

A)  advance-decline lines 
B)  point and figure charts 
C)  the Elliot Wave theory 
D)  all of these 
A)  advance-decline lines 
B)  point and figure charts 
C)  the Elliot Wave theory 
D)  all of these

Question 10

Tests of market efficiency have focused on ____________.

Accepted Answer

A)  the mean-variance efficiency of the selected market proxy 
B)  strategies that would have provided superior risk-adjusted returns 
C)  results of actual investments of professional managers 
D)  strategies that would have provided superior risk-adjusted returns and results of actual investments of professional managers 
E)  the mean-variance efficiency of the selected market proxy and strategies that would have provided superior risk-adjusted returns 
A)  the mean-variance efficiency of the selected market proxy 
B)  strategies that would have provided superior risk-adjusted returns 
C)  results of actual investments of professional managers 
D)  strategies that would have provided superior risk-adjusted returns and results of actual investments of professional managers 
E)  the mean-variance efficiency of the selected market proxy and strategies that would have provided superior risk-adjusted returns

Question 11

On a particular day,there were 920 stocks which advanced on the TSX and 723 which declined.The volume in advancing issues was 80,846,000 and the volume in declining issues was 70,397,000.The trin ratio is __________ and technical analysts are likely to be __________.

Accepted Answer

A)  0.90,bullish 
B)  0.90,bearish 
C)  1.11,bullish 
D)  1.11,bearish 
A)  0.90,bullish 
B)  0.90,bearish 
C)  1.11,bullish 
D)  1.11,bearish

Question 12

Charting techniques are used by technical analysts to produce ____________ indicators.

Accepted Answer

A)  sentiment 
B)  flow of funds 
C)  market structure 
D)  none of these 
A)  sentiment 
B)  flow of funds 
C)  market structure 
D)  none of these

Question 13

Technical analysts consider a decrease in the put/call ratio as __________.

Accepted Answer

A)  a bearish signal 
B)  a bullish signal 
C)  a bearish signal by some and bullish signal by others 
D)  a signal to enter the options market 
A)  a bearish signal 
B)  a bullish signal 
C)  a bearish signal by some and bullish signal by others 
D)  a signal to enter the options market

Question 14

When the market breaks through the moving average line from below,a technical analyst would probably suggest it is a good time to __________.

Accepted Answer

A)  buy the stock 
B)  hold the stock 
C)  sell the stock 
D)  become a fundamental analyst rather than a technical analyst 
A)  buy the stock 
B)  hold the stock 
C)  sell the stock 
D)  become a fundamental analyst rather than a technical analyst

Question 15

According to Elliot wave theory,the stock market behavior can be explained as _______________.

Accepted Answer

A)  a series of medium-term wave cycles 
B)  a series of long-term wave cycles 
C)  a series of superimposed long-term and short-term wave cycles 
D)  none of these 
A)  a series of medium-term wave cycles 
B)  a series of long-term wave cycles 
C)  a series of superimposed long-term and short-term wave cycles 
D)  none of these

Question 16

__________ is a value below which the market is relatively unlikely to fall.

Accepted Answer

A)  book value 
B)  resistance level 
C)  support level 
D)  none of these 
A)  book value 
B)  resistance level 
C)  support level 
D)  none of these

Question 17

According to Kondratieff,the macro economy moves in a series of waves which recur at intervals of approximately ________________.

Accepted Answer

A)  18 months 
B)  4 years 
C)  8 years 
D)  50 years 
A)  18 months 
B)  4 years 
C)  8 years 
D)  50 years

Question 18

How do you distinguish between fundamental analysis and technical analysis?

Accepted Answer

Fundamental analysis examines the indivi

Question 19

When technical analysts say a stock has good "relative strength",they mean that in recent past __________.

Accepted Answer

A)  it has performed well compared to its closest competitors 
B)  it has exceeded its own historical high 
C)  trading volume in the stock has exceeded the normal trading volume 
D)  it has outperformed the market index 
A)  it has performed well compared to its closest competitors 
B)  it has exceeded its own historical high 
C)  trading volume in the stock has exceeded the normal trading volume 
D)  it has outperformed the market index

Question 20

The most common measure of ________ is the spread between the number of stocks which advance in price and the number of stocks which decline in price.

Accepted Answer

A)  market breadth 
B)  market volume 
C)  odd-lot trading 
D)  short interest 
A)  market breadth 
B)  market volume 
C)  odd-lot trading 
D)  short interest

Exam 10: Bond Prices and Yield

___________ is a value above which it is difficult for the market to rise.

Technical analysis focuses on _______________________.

If you believed in the reversal effect,you should ___________.

_____________ cumulative tally of the number of advancing stocks minus declining stocks.

On a particular day,there were 920 stocks which advanced on the TSX and 723 which declined.The volume in advancing issues was 80,846,000 and the volume in declining issues was 70,397,000.The common measure of market breadth is __________.

Dow theory is a technique that attempts to identify _________________.

Which of the following is considered a sentiment indicator?

Information processing errors consist of I.forecasting errors II.overconfidence III.conservatism IV.framing

Congestion areas are associated with ________.

Tests of market efficiency have focused on ____________.

On a particular day,there were 920 stocks which advanced on the TSX and 723 which declined.The volume in advancing issues was 80,846,000 and the volume in declining issues was 70,397,000.The trin ratio is __________ and technical analysts are likely to be __________.

Charting techniques are used by technical analysts to produce ____________ indicators.

Technical analysts consider a decrease in the put/call ratio as __________.

When the market breaks through the moving average line from below,a technical analyst would probably suggest it is a good time to __________.

According to Elliot wave theory,the stock market behavior can be explained as _______________.

__________ is a value below which the market is relatively unlikely to fall.

According to Kondratieff,the macro economy moves in a series of waves which recur at intervals of approximately ________________.

How do you distinguish between fundamental analysis and technical analysis?

When technical analysts say a stock has good "relative strength",they mean that in recent past __________.

The most common measure of ________ is the spread between the number of stocks which advance in price and the number of stocks which decline in price.

Investments: Background and Issues

Asset Classes and Financial Instruments

Securities Markets

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Performance Evaluation and Active Portfolio Management

Globalization and International Investing

Taxes, Inflation, and Investment Strategy

Investors and the Investment Process

Mutual Fund: Objectives, Types, NAV, Turnover Ratio, and More

International Finance and Investments: Understanding Foreign Markets and Risks

Filters

On a particular day,there were 920 stocks which advanced on the TSX and 723 which declined.The volume in advancing issues was 80,846,000 and the volume in declining issues was 70,397,000.The trin ratio is and technical analysts are likely to be .